Angel Broking is bullish on Cadila Healthcare and has recommended buy rating on the stock with a target price of Rs 965 in its November 16, 2011 research report.
Angel Broking is bullish on Cadila Healthcare and has recommended buy rating on the stock with a target price of Rs 965 in its November 16, 2011 research report.
"Cadila Healthcare (Cadila) reported a disappointing set of numbers for 2QFY2012, except on the sales front; sales were mostly in-line at ~Rs 1,220cr. However, higher expenses during the quarter resulted in a contraction in the operating margin, which came in at 18.1%. This coupled with forex losses during the quarter resulted in higher dip in net profit during the quarter."
"For 2QFY2012, Cadila reported in-line net sales of Rs 1,220cr, up 10.3% yoy, driven by the exports segment. On the domestic front, net sales grew by 6.6% yoy to Rs 470cr. Although the company's gross margin came in flat at 68.0%, OPM declined to 18.1% during the quarter, majorly due to higher employee expenses and R&D expenses, which grew by 32.1% and 23.0% yoy, respectively. Net profit for the quarter declined by 39.8% yoy to Rs 103cr, lower than our estimate. Adjusted for forex losses, the company posted a ~3% decline in its net profit during the quarter."
"We expect Cadila's net sales to post a 19.2% CAGR to Rs 6,343cr and EPS to report a 19.4% CAGR to Rs 48.2 over FY2011-13E. We recommend Buy on the stock with the revised target price of Rs 965," says Angel Broking research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
